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GENERAL CONDITIONS OF CONTRACT FOR WORKS

LIST OF CONTENTS

Sl.No. Section Description Page No.

NOTICE INVITING TENDER

1 I Information and instructions for tenders 3-5
2 II Tender forms and Schedules 6 - 10
1. Tender Form 6
2. Warranty Form 8
3. Schedule ‘A’- Schedule of quantities and Prices 9
4. Schedule ‘B’ – Material for issue to contractor 9
5. Schedule ‘C’ – Completion schedule of works and 10
compensation for delay
6. Schedule ‘D’ – Reference to General conditions of 10
contract.
3 III General Conditions of Contract. 11 – 32
1. Definitions 11
2. Interpretation 11
3. Security deposit for performance 12
4. Refund of Security Deposit 12
5. Sufficiency of Tender 12
6. Contract documents 13
7. Discrepancies and adjustment of errors 13
8. Duties and powers of Engineer-in-Charge’s 14
representative
9. Assignment and Sub-letting 14
10. Facilities to other Contractors 14
11. Changes in Constitution 14
12. Use and care of Site 14
13. Advances and recoveries thereof 15
14. Commencement of work 16
15. Work to be carried out in accordance with 16
specifications, drawings and orders etc.
16. Setting out the works 16
17. Urgent works 16
18. Deviations 17
19. Contractor’s supervision 17
20. Instructions and Notices 18
21. Construction plant and equipment 18
22. Patent rights 18
23. Materials 18
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24. Power Supply 20
25. Supply of unfiltered water for construction purposes 20
26. Watching and Lighting 20
27. Work during night or on Sundays and Holidays 20
28. Site drainage, protection of trees and prevention of 20
Nuisance
29. Labour 20
30. Removal of contractor’s men 22
31. Materials obtained from Excavation and treasure, 22
Trove, fossils etc.
32. Force Majeure 22
33. Liability for damage, defects or imperfections and 23
rectifications thereof.
34. Contractor’s liability and insurance. 23
35. Suspension of works 24
36. Foreclosure of contract in full or in part due to 25
abandonment or reduction in scope of work
37. Termination of contract on death 25
38. Default by the contractor and termination of contract in 25
full or in part
39. Completion time and Extensions 27
40. Compensation for delay 27
41. Inspection and Approval 27
42. Completion Certificate 28
43. Defect liability periods 28
44. Measurement 29
45. Payment on Account 29
46. Taxes, Duties and Levies etc. 30
47. Payment of final bill 30
48. Over payments and Under payments 30
49. Training of Apprentices 31
50. Contract matters to be treated as Confidential 31
51. Laws of governing contract 31
52. Finality Clause 31
53. Sum payable by way of compensation to be considered 31
as reasonable without reference to actual loss.
54. Arbitration 31
55. Competent Court 32
4 IV Forms of Bank Guarantee for the conversion of cash 33
amount of Security Deposit aggregating to Rs.One
lakh.
6 Special Terms and Conditions
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SECTION - I

INFORMATION AND INSTRUCTION FOR TENDERERS

1. The details of work to be carried out and its scope are given in the “Technical Specifications” of
these documents which also indicate a brief description of the project where work is to be
executed. The tenderers are advised to study the same carefully before tendering and they shall
be deemed to have fully acquainted themselves with the same.
2.1 The tenderers in their own interest, are also advised to inspect and examine the site and its
surroundings and satisfy themselves, before submitting their tenders, in respect of the site
conditions including but restricting to the following which may influence or effect the work or cost
thereof under the contract.

a) Site conditions including access to the site, existing and required roads and other means of
transport/communication (other than that of the Corporation) for use by him in connection
with the work.

b) Requirement and availability of land and other facilities for his enabling of works, stores,
workshops etc.

c) Ground conditions including those bearing upon transportation, disposal, handling and
storage of materials required for the work or obtained threfrom.

d) Source and extent of availability of suitable materials including water etc. and labour (skilled
and unskilled), required for work and Law and Regulations governing their use and
employment.

e) Geological, meteorological, topographical and other general features of the site and its
surroundings as are pertaining to and needed for the performance of the work.

f) The limit and extent of surface and sub-surface water to be encountered during the
performance of the work and requirement of drainage and pumping.

g) The type of equipment and facilities needed, preliminary to, for and in the performance of the
work; and
All other information pertaining to and needed for the work including information as to the
risks contingencies and other circumstances which may influence or effect the work or the
cost thereof under this contract.

2.2 The tenderers should note that information, if any, in regard to the site and local conditions,
as contained in these tender documents, except for the material and facilities agreed to be
supplied by the Corporation, has been given merely to assist the tenderers and is not
warranted to be complete.

2.3 The tenderers should note and bear in mind that the corporation shall bear no responsibility
for the lack of acquaintance of the site and other conditions or any information relation, on
their part. The consequences of the lack of any knowledge, as aforesaid, on the part of the
tenderers shall be at their risk and cost and no changes or claims whatsoever consequent upon
the lack of any information, knowledge or understanding shall be entertained or payable by
the Corporation.

3.0 The tender should be submitted in the prescribed form and the same should be signed
properly as laid down hereunder:-

a) If the tender is submitted by an individual, it shall be signed by the proprietor above his full
name and full name of his firm with its current business address.
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b) If the tender is submitted by a proprietary firm, it shall be signed by the proprietor above his
full name and full name of his firm with its name and current business address.

c) If the tender is submitted by a firm in partnership, it shall be all signed by all the partners
of the firm above their full names and current business addresses, or by partner holding
the power of attorney for their full names and current business address, or by a partner
holding the power of attorney for the firm by signing the tender in which case a certified
copy of the power of attorney shall accompany the tender. A certified copy of the
partnership deed and current business of all the partners of the firm shall also accompany
the tenders.

d) If the tender is submitted by a limited company or a limited Corporation, it shall be

signed by a duly authorized person holding the power of attorney for signing the tender in
which case a certified copy of the power of attorney shall accompany the tender. Such
limited company or Corporation may be required to furnish satisfactory evidence of its
existence before the contract is awarded.

4.0 The tenderer shall furnish with his tender the following in the first envelop.

a) An attested copy of Permanent Account Number (PAN) allotted to him by Income Tax
Department.

b) Copies of relevant documents / certificate regarding his past experience as required as

per NIT.

c) A copy of P.F. code no. allotted from RPFC.

d) Copy of valid registration certificate of contractor with a Govt. department / PSU’s.

e) EMD as given below at Sl.No.5.

5.0 A) Earnest Money Deposit of Rs 14,000 /- (Rs fourteen thousand only)

must accompany each tender. This deposit shall be in the shape of demand
draft drawn in favour of NHPC Ltd., payable at SBI,Pandari Branch, Raipur (C.G.).
or
In the shape of Bank guarantee if the amount of EMD exceeds Rs.50,000/-
B) Tenders not accompanied by Earnest Money Deposit shall be rejected. If
during the tender validity period, the tenderer withdraws his tender, the Earnest Money
Deposit shall be forfeited.

C) The Earnest Money Deposit will be returned to the unsuccessful tenderers without
any interest after finalization of the case.

6.0 The rates shall be written both in words and in figures. Tender shall also
show the total of each item the total of each scheduled and the Grand Total of the whole
contract. Corrections, if any, shall be made by crossing out, initialing, dating and
rewriting. In case of conflict between the figures and words in the rates, the later shall
prevail.

7.0 The Corporation shall have the right of rejecting all or any of the tenders and will not be
bound to accept the lowest or to give any reasons for their decision.

8.0 Tender 0pening Committee (TOC) duly constituted by competent authority will open the
tenders in the presence of tenderers who may be present at the time. If any of the tenderer
or his agent is not present at the time of opening of tender, the TOC will, on opening of
tender of the absentee tenderer, prepare a statement of the attested and unattested
corrections in the tender over their signatures. Such a list shall then be binding on the
absentee tenderer.
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9.0 The tenderers shall not be entitled during the period of validity of their offers, without
the written consent of the Corporation, to revoke or withdraw their tenders or vary in any
respect the tender given or any term thereof. In case of tenderer revoking or withdrawing,
his tender or varying any terms in regard thereof without the consent of the Corporation
in writing, the tenderer shall forfeit his earnest money paid alongwith the tender.

10.0 Central Government Public Undertakings will, however, be allowed suitable preference in
keeping with the policy of the Government of India. Such preference will be considered
taking into account various factors but not limited to factors like technical suitability,
requirement of completion period and other terms and conditions of tender.

11.0 The “Notice Inviting Tender” and this “Informations and Instructions for Tenderers” shall
form part of the Tender Documents.

12.0 TOC will open the second envelop containing Price Bid as per “Schedule of Quantities
and Prices” in Schedule ‘A’, only in case of Tenderers whose Technical Bid in Ist
envelop has been found to be acceptable as per terms of NIT.
13.0 “Special Terms & Conditions” given here in shall be in addition to these General
Conditions of contract and in case of any ambiguity. ‘ Special Terms & Conditions’ shall
supercede.
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SECTION-II

TENDER FORMS & SCHEDULES

TENDER NOTICE

To _________________________

_________________________

I/We have read and examined the following tender documents relating to the work of
__________________________________________________________________________

1. a) Notice Inviting Tender.

b) Information and Instructions for tenderers.

c) Warranty Card

d) Schedule A, B, C & D.

e) “General Conditions of contract”, along with Annexures, if any.

f) Special Terms & Conditions.

II. Technical Specifications.

III. Drawings.

2. I/We hereby tender for execution of the works referred to in the documents mentioned in
paragraph. I above upon the terms and conditions contained or referred to in the aforesaid
document and in accordance to all respects with the specifications, designs drawings and other
details given therein and at the rates contained in Schedule ‘A’ and within the period(s) of
completion as given in Schedule ‘D’ and subject to such terms and conditions as stipulated in
clause 39.

3. I/We agree to keep this tender open for acceptance for 120 days from the date of opening thereof
and also agree not to make any modifications in its terms and condition at our own accord.

4. A sum of Rs.____________(Rupees__________________________) is hereby forwarded in the

form of Demand Draft / Bank Guarantee as earnest money. I/We agree if I/We fail to keep the
validity of tender open, as aforesaid, or I/We make any modification in the terms and conditions
of my/our tender at our own accord and/or after the acceptance of our tender if I/We fail to
commence the execution of the works as provided in the documents referred to in paragraph 1
above, I/We shall become liable for forfeiture of my/our earnest money, as aforesaid, and the
Corporation shall without prejudice to any other right or remedy, be at liberty to forfeit the said
earnest money absolutely.

Should this tender be accepted, I/We agree to abide by and fulfil all the terms and conditions and
provisions of the above mentioned tender documents.

5. I/We certify that the Tender submitted by me/us is strictly in accordance with the terms,
conditions specifications etc, as contained in your Tender Documents, referred to in paragraph1
above, and it is further certified that it does not contain any deviations to the aforesaid documents.

Signature alongwith Seal of Company

………………………………………
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(Duly authorized to sign the Tender on behalf

of the Contractor)

Name……………………………………….

Designation…………………………………..

Witness………………………….. Name of Company…………………………..

Signature………………………… (IN BLOCK LETTERS)
……………………………………………….
Date………………………… Date……………………….
Name & Address…………………… Postal Address……………………………….
……………………………………… ……………………………………………….
……………………………………… Telephone No………………………………..
Fax No……………………………………….
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WARRANTY CARD

M/s……………………………………………………………………………………………...
having its registered office at ......................................................................................................
…………………………………………………………………………………………………..
(hereinafter referred to ‘as the contractor’) having carefully studied all the documents specification,
drawings etc. pertaining to the contract for works required for the construction of the works
of………………………………………………………………………………….
………………………………………………………………………………………………….
and the local and site conditions and having undertaken to execute the said works.

DO HEREBY WARRANT THAT:

The contractor is familiar with all the requirements of the contract.

2. The contractor has investigated the site and satisfied himself regarding the character
of the work and local conditions that may affect the work or its performance.

3. The Contractor is satisfied that the work can be performed and completed as required
in the contract.

4. The Contractor accepts all risks directly or indirectly connected with the performance
of the contract.

5. The Contractor has had no collus on with other contractors with any of the men of the
Engineer-in-Charge or with any other person in Corporation to execute the said works according
to the terms and conditions of the said contract.

6. The Contractor has not been influenced by any statement or promise of the
Corporation of Engineer-in-Charge but only by the contract documents.

7. The contract is financially solvent.

8. The Contractor is experience and competent to perform the contract to the satisfaction
of the Engineer-in-Charge.

9. The statement submitted by the contractor is true.

10. The contractor is familiar with all general and special laws, Act, Ordinances, Rules
and Regulation of the Municipalities, District, State and Central Government that may affect the
works, its performance or personnel employed therein.

Date: For and on behalf of the Contractor.

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SCHEDULE ‘A’

SCHEDULE OF QUANTITIES & PRICES

Sl.N Description of the items of Unit Quanti- Rate (in Rs.) Amount
o. work ties In fig. in words (in Rs.)
1. 2. 3. 4. 5. 6. 7.

-------As per Annexure enclosed-------

Total Amount Rs. (In figures)…………………….

Rs. ( In works)…………………………………….

Signature of Issuing Officer Signature of Contractor

Date……………….. Date……………….

………………………………………………………………………………………………….

SCHEDULE ‘B’

MATERIAL FOR ISSUE TO THE CONTRACTOR

Sl.No. Particulars Quantity to Unit All inclusive Place of Issue

be issued recovery rate
at which
materials will
be issued
(Rs.)
1 2 3 4 5 6

----------------------------------------NIL-----------------------------------------------

Signature of issuing officer

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SCHEDULE ‘C’

CONSTRUCTION / COMPLETION SCHEDULE OF WORKS AND COMPENSATION FOR

DELAY
( See Clause 40 )

Sl.No. Contract Sum Completion Compensation for delay Remarks

time
1 2 3 4 5
1/4% of contract sum per
week of delay subject to
maximum of 5% of contract
sum.

Signature of Issuing officer

……………………………………………………..…………………………………………....

SCHEDULE ‘D’

REFERENCE TO GENERAL CONDITION OF CONTRACT

Sl.No. Clause No. Description Stipulations

1 18.2(iii) Market rate-percentage addition to cover
contractor’s overheads, profits, 10 Percent
supervision and other charges
2 24.1 Power Supply Tariff rate Rs per unit (KWH)
3 39.1 Time allowed for execution of work As specified in NIT
4 43 Defects Liability Period 06 Calendar months from the
certified date of final completion
of entire work covered under the
contract.

Signature of Issuing Officer

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SECTION – III

GENERAL CONDITIONS OF CONTRACT

CLAUSE – 1 DEFINITIONS

In contract, the following expression shall, unless the context otherwise requires, have the meanings
thereby respectively assigned to them:

(i) Contract: means the document forming the tender, acceptance thereof and the formal
agreement executed between the NHPC Limited and the Contractor, together with
documents referred to therein. Otherwise, it shall mean the notice Inviting Tender,
information and instruction for Tenderers, Tender (including the warranty, “Schedule
of Quantities and Prices” and other schedules attached thereto), General Conditions
of the Contract special conditions, if any. Specification, Designs, Drawings and
Letter of Award thereof.
(ii) Contract sum: means the amount arrived at by multiplying the quantities shown in
the Schedule of Quantities and Prices by the respect item rates as allowed.
(iii) Contractor: means the successful tenderer who is awarded contract to perform the
work covered under these tender documents and shall be deemed to include the
contractors successors, executors, representatives or assignees approved by the
Engineer-in Charge.
(iv) Corporation: means the NHPC Limited having its registered office at Sector-33,
Faridabad (Haryana) and includes therein legal representatives, successors and
assignees.
(v) Day: means a calendar day beginning and ending at midnight.
(vi) Drawings: means the drawing referred to in the specifications and / or appended
with the tender documents, any modification of such drawings approved in writing by
the Engineer-in-Charge and shall also include drawings issued for actual construction
of the works from time to time by the Engineer-in-Charge.
(vii) Engineer-in-Charge: means the Engineering Officer appointed by the Corporation to
sign or cause to sign the Contract agreement on behalf of the Corporation and/or the
Engineering Officer appointed by the Corporation or its duly authorized
representative to direct, supervise in charge of the works for the purpose of this
Contract.
(viii) Chief Engineer: means the General Manager or Chief Engineer of the Corporation,
as the case may be.

(ix) Letter of Award: means a letter from the Engineer-in-Charge conveying the
acceptance of the tender/offer subject to such reservations as may have been stated
therein.

(x) Month: means the calendar month.

(xi) Site: means the land and/or other places, on under in or through which the works are
to be executed including any other lands or place which may be allotted for the
purpose of the contract.
(xii) Urgent Works: means any urgent measures, which in the opinion of the Engineer-in-
Charge become necessary / at the time of execution and/or during the progress of
work to obviate any risk of accident or failure or to obviate any risk of damage to the
structure or required to accelerate the progress of work or which become necessary
for security or for any other reason the Engineer-in-Charge may deem expedient.
(xiii) Week: means seven consecutive calendar days.
(xiv) Work or Works: means work/works to be executed in accordance with the contract.

CLAUSE- 2: INTERPRETATIONS:

2.1 Words indicating the singular only shall also include the plural: he includes she and VICE VERSA
unless this is repugnant to the context.
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2.2 Heading and marginal notes in these General Conditions shall not be deemed to form part thereof or
be taken into consideration in the interpretation or construction thereof the Contract.

CLAUSE 3 : SECURITY DEPOSIT FOR PERFORMANCE:

3.1 As soon as the Letter of Award is issued to the Contractor, amount of EMD deposited by him shall be
converted into Security Deposit.

3.2 Including the security deposit under Sub-clause 3.1 above, the Contractor shall have to furnish to the
Engineer-in-Charge security deposit for due performance of the contract a sum equal to 5% (five per
cent) of the Contract sum. Such sums of balance Security Deposit shall be deducted by the Engineer-
in-Charge from the running account bills of the contractor @ 5% (five per cent) of the total value of
each bill of the work done towards security deposit, subject to the condition that the total amount of
such deductions together with the amount converted as security deposit, as laid down in sub-clause 3.1
above, shall not exceed 5% (Five per cent) of the Contract sum.

3.3 If the Contractor expressly requests in writing, he will be refunded the amount of security deposit
against submission of a Bank guarantee of equal amount valid upto defect liability period provided the
amount of security deposit is more than Rs.one lac and work has been completed.

3.4 All compensation or other sums of money payable by the Contractor under the terms of the Contractor
or any other contractor or on any other account whatsoever, may be deducted from or paid by the sale
of a sufficient part of his security deposit or from the interest arising therefrom or from any sums
which may be due or may become due to the Contractor by the Corporation on any account
whatsoever. Also in the event of the Contractor’s security deposit being reduced by reasons of such
deductions or sale, as aforesaid, the Contractor shall, within 14 days of receipt of notice of demand
from the Engineer-in-Charge make good the deficit in the security deposit.

3.5 (a) Should there arise any occasion under the Contract due to which the periods of validities of
Bank Guarantee as may have been furnished by the Contractor from time to time, are required to be
extended/renewed, the Contractor at his own cost shall get the validity periods of such guarantees, as
aforesaid extended/renewed, as the case may be and furnish these to the Engineer-in-charge one month
before the expiry date of the aforesaid Guarantees/originally furnished. Also in case of any deficit in
securities on any account as might occur or is noticed the contractor shall forthwith or on demand
furnish additional securities.

(b) In case of failure of the Contractor to strictly comply with the aforesaid provisions on
any account for whatsoever reasons, the Engineer-in-Charge shall be at liberty,
notwithstanding anything contained contrary to this in the Contract, to take such measures and
actions, including but not restricting to the following as may be considered necessary by him
under the circumstances to satisfy the provisions of contract for having the required amount of
securities at the relevant time:

(c) (i) to invoke the existing Bank Guarantee and / or

(ii) to withhold the payment of the bills or other dues of the Contractor arising out of the
Contract till such time the aggregate of the amount of such bills reaches the level of the
amount of the expired Bank Guarantee and / or the deficit in security deposit is made good or
the Contractor furnishes a fresh Bank Guarantee.

3.6 Bank guarantees / Drafts, as aforesaid shall be valid till the date of expiry of Defects Liability Period
under the Contract (Clause 43).

CLAUSE- 4 : REFUND OF SECURITY DEPOSIT:

The Security Deposit less any amount due shall, on demand, be returned to the Contractor on the
expiry of Defects Liability Period (referred in Clause 43 hereof) or on payment of the amount of the final bill
payable in accordance with clause 48, whichever is later, provided the Engineer-in-Charge is satisfied that
there is no demand outstanding against the Contractor. No interest on the amount of security deposit shall be
paid to the contractor at the time of release of security deposit as above.

CLAUSE- 5: SUFFICIENCY OF TENDER:

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The Contractor shall be deemed to have satisfied himself before tendering as to the correctness and
sufficiency of his tender for the works and of the rates quoted in the Schedule of Quantities and Prices which
shall (except as otherwise provided in the Contract), cover all his obligations under the Contract and all matters
and things necessary for the proper execution and completion of the works in accordance with the provisions of
the Contract and its maintenance during construction.

CLAUSE-6: CONTRACT DOCUMENTS:

6.1 The language or languages in which the contract documents shall be drawn up shall be English and if
the said documents are written in more than one language, the language according to which the
contract is to be construed and interpreted shall be English and designated as the ‘Ruling Language’.

6.2 The Contractor shall be furnished, free of charge, one certified true copy of the Contract Documents.

6.3 One photo copy of contract Documents furnished to the Contractor as aforesaid shall be kept by the
Contractor on the site in good order and the same shall at reasonable time be available for inspection
and use by the Engineer-in-Charge, his representatives or by other inspecting officers.

6.4 None of these Documents shall be used by the Contractor for any purpose other than that of this
Contract.

CLAUSE-7: DISCREPANCIES AND ADJUSTMENT OF ERRORS:

7.1 Detailed drawings shall be followed in preference to small scale drawings and figured dimensions in
preference to scaled dimensions. In the case of discrepancy between the Scheduled of Quantities and
Prices, the Specifications and / or the Drawings, the following order of precedence shall be observed.

(a) Description in the Schedule of Quantities and Prices

(b) Relevant Specifications and Special Conditions, if any.

(c) Drawings

(d) General Specifications.

7.2 The contractor shall study and compare the drawings, specifications and other relevant information
given to him by the Engineer-in-Charge and shall report in writing to the Engineer-in-Charge any
discrepancy and inconsistency which he notes. The decision of the Engineer-in charge regarding the
true intent and meaning of the drawings and specifications shall be final and binding.

7.3 Any error in description or quantity or price in ‘Scheduled of Quantities and Prices’ or any omission
therefrom shall not vitiate the Contract or release the Contractor from the execution of the whole or
any part of the works comprised therein according to drawings and specification or from any of his
obligations under the Contract.

7.4 If on check there are found to be differences between the rates given by the Contractor in words and
figures or in the amount worked out by him in the Scheduled of Quantity and Prices and General
Summary the same shall be adjusted in accordance with the following rules.

(a) In the event of a discrepancy between description in words and figures quoted by a tenderer, the
description in words shall prevail.

(b) In the event of the error occurring in the amount column of Schedule of Quantities and Prices as a
result of wrong multiplication of unit price and quantity, the unit price shall be regarded as firm
and multiplication shall be amended on the basis of the price.

(c) All errors in totaling in the amount column and in carrying forward total shall be corrected.

(d) The totals of various sections of Schedule of Quantity & Prices amended shall be carried over to
the General Summary and the tendered sum amended accordingly. The tendered sum so altered
shall, for the purpose of tender, be substituted for the sum originally tendered and considered for
acceptance instead of the original sum quoted by the tenderer. Any rounding off of Quantities or
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in sections of Schedule of Quantities and Prices or in General Summary by the tenderer shall be
ignored.

CLAUSE-8: DUTIES AND POWERS OF ENGINEER-IN-CHARGES

REPRESENTATIVE:

8.1 The duties of representative at the Engineer-in-Charge are to watch and supervise the works and to test
and examine any materials to be used or workmanship employed in connection with the works. He
shall have no authority to order any work involving any extra payment by the Corporation nor to make
any variation in the works.
8.2 The Engineer-in-Charge may, from time to time in writing, delegate to his representative, any of the
power and authorities, vested in the Engineer-in-Charge and shall furnish to the contractor a copy of
all such written delegation of powers and authorities. Any written instruction or written approval
given by the representative of the Engineer-in-Charge to the contractor within the terms of such
delegation shall bind the Contractor and the Corporation as if it has been given by the Engineer-in-
Charge.

8.3 Failure of the representatives of the Engineer-in-Charge to disapprove any work / materials shall be
without prejudice to the power of the Engineer-in-Charge thereafter to disapprove such work or
materials and to order the pulling down, removal or breaking up thereof. The Contractor shall, at his
own expense, again carry out such works as directed by the Engineer-in Charge.

8.4 If the contractor is dissatisfied with any decision of the representative of the Engineer-in-Charge, he
will be entitled to refer the matter to the Engineer-in-Charge who shall thereupon confirm, reverse or
vary such decision and the decision of the Engineer-in-Charge in this regard shall be final and binding
on the contractor.
CLAUSE-9: ASSIGNMENT AND SUB-LETTING:

The Contractor shall not sub-let, transfer or assign the whole or any part of the work under the Contract
provided that the Engineer-in-Charge, may at his discretion, approve and authorize the Contractor to sub-let
any part of the work, which, in his opinion, is not substantial after the contractor submits to him in writing the
details of the part of the work(s) or trade proposed to be sub-let, the name of the sub-contractor thereof together
with his past experience in the said work / trade and the form of the proposed sub-contractor. Nevertheless any
such approval or authorization by the Engineer-in-Charge shall not relive the Contractor from his any or all
liabilities, obligations duties and responsibilities, under the contract. The contractor shall also be fully
responsible to the Corporation for all the acts and omission of the sub-contractor, his employees and agents or
persons directly employed by the Contractor. However, the employment of piece-rate workers shall not be
construed as sub-letting.

CLAUSE-10: FACILITIES TO OTHER CONTRACTORS

The Contractor shall, in accordance with the requirements of the work as decided by the Engineer-in-Charge,
afford all reasonable facilities to other contractors engaged contemporaneously on separate Contracts and for
departmental labour and labour of any other properly authorized authority or statutory body which may be
employed at the site for execution of any work not included in the contract or of any contract which the
Corporation may enter into in connection with or ancillary to the works. In all matters of conflict of interest,
the Engineer-in-Charge shall direct what compromise should be made and his decision shall be final and
binding on the parties.

CLAUSE-11: CHANGES IN CONSTITUTION:

Where the contractor is a partnership firm, prior approval in writing of the Engineer-in-Charge shall be
obtained before any charge is made in the constitution of the firm. Where the Contractor is an individual or a
Hindu undivided family business concern, such approval, as aforesaid, shall likewise be obtained before the
contractor enters into any partnership firm which would have the right to carry out the work undertaken by the
contractor. If prior approval as aforesaid, is not obtained, the contract shall be deemed to have been assigned
in contravention of Clause 38 hereof and the same action will be taken and the same consequences shall ensure
as provided for the said Clause 38.

CLAUSE-12: USE AND CARE OF SITE:

12.1 The Contractor will be permitted to use the site and lands under the control of Corporation and
required for execution of work, subject to such conditions as detailed in sub-clause 12.4 ibid. The
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Contractor shall not commence any operation on such lands except with the prior approval of
the Engineer-in-Charge.

All areas of operation including those for his staff and labour colonies handed over to the contractor
shall be cleared and handed back by the contractor at his own cost and expense whatsoever to the
Engineer-in-Charge. The Contractor shall make good at his own cost to the satisfaction of the
Engineer-in-Charge any damage or alterations made to areas or other property or land handed over to
him for purpose of these works. With the permission of the Engineer-in-Charge the Contractor may at
his expense erect temporary structures for storage sheds, office, residence etc. for non commercial use
on the land handed over to hi. At the completion of the work, these structures should be dismantled
and the site cleared and handed over to the Engineer-in-Charge. The Contractor shall also provide and
maintain at his own expense such temporary fences, guards, bridges and roads as may be necessary for
the execution of his preliminary, enabling and ancillary works or for safeguarding the public. If the
Engineer-in-Charge shall order any departure from any arrangement made by the Contractor, the
Contractor shall comply with such orders as the Engineer-in-Charge may issue from time to time. the
contractor shall not use or allow to be used, the site/land for any purpose other than the one specified
herein.

12.2 The Engineer-in-Charge shall, at his discretion and for duration of the Contract, make available
land for construction of the Contractor’s field office(s), colony, worship(s), stores, magazines for
explosives in isolated locations, assembly yard, land for borrow pits and quarries and access
thereto over routes indicated by the Engineer-in-Charge as may be required for execution of the
work. Development including leveling and dressing of the land and construction of temporary
roads (other than those to be provided by the Corporation under the Contract), office, colonies,
workshops, stores, magazines etc. as per the plans approved by the Engineer-in-Charge, shall be
done by the Contractor at his own cost. Land shall be generally made available at or near the site
of work, if possible and available, otherwise at any other place(s) earmarked for the purpose by
the Engineer-in-Charge.
12.3 The Contractor shall provide at his own cost all temporary pathways/road required at site or in
quarry or borrow areas and shall alter, adapt and maintain the same as required from time to time
and shall bear all expenses and charges for special or temporary way leaves required by him in
connection with access to the site and shall take up and clear them away and make good all
damages done to the site as and when no longer required and as and when ordered by the
Engineer-in-Charge.

12.4 The use of land as provided in sub-clause 12.1 to 12.3 ibid shall be regulated and be subject to the
following and such other terms and conditions as may be imposed by the Corporation:

(i) that he shall pay a nominal license fee of Rs.1.0 per year or part of a year for use and occupation
in respect each and every separate areas of land allotted to him.
(ii) that such use or occupation shall not confer any right of tenancy of the land on the contractor.
(iii) that the Contractor shall be bound to vacate the land on demand by the Engineer-in-Charge.
(iv) that the Contractor shall have no right to any construction over this land without the written
permission of the Engineer-in-Charge. In case, he is allowed to construct any structure he shall
have to demolish and clear the same at his cost before handing over the land bank to the
Corporation unless agreed to the contrary.
(v) that possession of site or other lands by the Contractor in connection with the contract shall not be
deemed to confer on him any right or interest in or over the land or possession thereof.

12.5 On completion of the work and before payment of the final bill, the Contractor shall handover the
vacant possession of the land licensed to him in connection with the work duly cleaned to the Engineer-in-
Charge duly made good the damages, if any done to the site.

CLAUSE-13: ADVANCES AND RECOVERIES THEREOF:

13.1 No mobilization advance or advance against plant, equipment or any other material etc. shall be
allowed to the Contractor.

13.2 On completion of work or completion of major portion of the work, if the Engineer-in-Charge is
satisfied and there is likely delay of payment due to any reason whatsoever it may be, 75% payment
against the work done and if entry has been made in the Measurement Book, may be paid to the
contractor as advance. This advance payment shall be released only in extreme emergent conditions
 16
on specific request of the contractor and shall immediately be adjusted from the payment of the bill
against which the advance has been paid. This advance payment shall be non-interest bearing.

CLAUSE-14: COMMENCEMENT OF WORK:

The Contractor shall commence the work(s) within 10 (Ten) days after the issue of Letter of Award and shall
proceed with the same with the expedition and without delay as may be expressly sanctioned or ordered by the
Engineer-in-Charge. If the contractor commits default in the commencement of the work as aforesaid, the
Engineer-in-Charge shall without prejudice to any other right or remedy be at liberty to cancel the Contract and
forfeit the earnest money / security deposit.

CLAUSE-15: WORK TO BE CARRIED OUT IN ACCORDANCE WITH SPECIFICATIONS,

DRAWINGS AND ORDERS ETC.:

15.1 The Contractor shall execute the whole and every part of the work in the most substantial and
workmanlike manner and both as regards material and otherwise in every respect in strict
conformity with the specification laid down or as may be laid down by the Engineer-in-
Charge under the terms of the Contract. The contractor shall also conform exactly, fully and
faithfully to the designs, drawings, specifications and instructions in writing in respect of the
work, duly signed by the Engineer-in-Charge as may be issued from time to time.

15.2 The Contractor shall be entitled to receive, on demand, in addition to the contract document,
in accordance with the provisions of Clause 6.2. The documents set forth here in respect of
the work on commencement or during the performance of the contract:

a) Contract drawings and revisions thereto - 2 sets

b) Specification or revisions thereof other than

standard printed Specifications - 1 set

c) Explanations, instructions etc. - 1 copy

Such further drawings, explanations, modifications and instructions, as the Engineer-in-

Charge may issue to the Contractor from time to time in respect of the work, shall be deemed to form
integral part of the Contract and the Contractor shall be bound to carry out the work accordingly.

15.3 All instructions and orders in respect of the works shall be given by the Engineer-in-Charge in
writing. However, any verbal instructions orders shall be confirmed by the Engineer-in-Charge as
soon as practicable without loss of time. Only such written instructions shall be deemed to be valid.

CLAUSE-16: SETTING OUT THE WORKS:

16.1 The Engineer-in-Charge shall establish/indicate the Bench mark/survey reference points and their
elevations.

16.2 The Contractor shall be responsible for the true and proper setting out of all the work (in relation to the
aforementioned Bench marks/survey reference points) for the correctness of the location, grades,
dimensions and alignment of all components of the work. If at any time during the progress of the
work, any error appear or arise in the location, grades, dimensions, or alignment of any part of the
work, the Contractor on being required to so by the Engineer-in-Charge, shall at his own expense,
rectify such, error to the satisfaction on the Engineer-in-Charge.

16.3 The Contractor shall afford all reasonable facilities and assistance to the Engineer-in-Charge for
checking the setting out and lines and grades established by the Contractor. The checking of any
setting out or of any line and grade by the Engineer-in-Charge shall not in any way relieve the
Contractor of his responsibility for the correctness thereof.

CLAUSE-17: URGENT WORKS:

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If any urgent work (in respect whereof the decision of the Engineer –in-Charge shall be final and binding)
becomes necessary, the Contractor shall execute the same as may be directed.

CLAUSE-18: DEVIATIONS:

18.1 The Engineer-in-Charge shall have powers to make any deviations in the original specifications or
drawings or designs of the work or any part thereof that in his opinion is necessary at the time of or
during the course of execution of the works. For the aforesaid purpose or for any other reason, if it
shall, in the opinion of the Engineer-in-Charge,be desirable, he shall also have the powers to make
deviations, such as (i) Variations (ii) Extra (iii) Addition/Omissions and (iv) Alterations or
Substitutions of any kind. No such deviations in the specifications or drawings or designs or Schedule
of Quantities, as aforesaid, shall in any way vitiate or invalidate the contract any such deviations which
the Contractor may be directed to do shall form integral part of the contract as if originally provided
therein and the contractor shall carry out the same on the same conditions in all respects on which he
agreed to do the works under the Contract.

18.2 The rates for such items of work as are required to be executed due to deviations as stated in sub-
clause 18.1 above shall be payable in the manner as stated hereunder.

(i) If the deviation do not exceed plus or minus 30% (thirty per cent) in respect of individual
items and provided further that the total cost of work executed/to be executed by the
contractor including the cost of deviations is not more or less than 20% (twenty per cent) of
the contract sum, the rates already provided in the Schedule of quantities, shall apply in
respect of the same item(s) of work to be executed due to variation.

(ii) In case same items are not available in the Schedule of Quantities, the rates of such items
within the limits as aforesaid as far as practicable shall be derived from the quoted rates of
analogus item(s) in the Schedule of Quantities after actual observance at site. The decision to
select analogus item(s) shall be taken by the Engineer-in-Charge which shall be conclusive
and binding on the Contractor.

(iii) Provided where some extra items and/or analogus items are not available in the Schedule of
Quantities and for the variation in respect of individual items exceeding the prescribed limit of
30% as aforesaid or for extra items not covered in the contract, the rates for such items(s) to
be executed shall be determined on the basis of actual analyzed cost comprising of the cost of
material to be supplied by the Contactor (including transportation and taxes, levies if paid)
labour actually engaged for the particular work, cost of operation of plant and machinery used
for the work plus such percentage (as indicated in Schedule ‘D’) to cover the over heads,
profits, contractor’s supervision and other charges, if any. The rates so derived shall be
approved by the competent authority and shall be communicated by the Engineer-in-Charge
which shall be conclusive and binding on the contractor.

18.3 If requested by contractor the time for completion of the work shall, in the event of any deviation
resulting in additional cost, over the contract sum, be extended in the proportion which the altered,
additional or substituted work bears to original contract sum plus such further additional time as may
be considered reasonable by the Engineer-in-Charge whose decision shall be conclusive as to such
provision.

18.4 Under no circumstance, the contractor shall at any stage suspend the work on account of non
settlement of rates of such deviated items.
CLAUSE-19: CONTRACTOR’S SUPERVISION:

19.1 The Contractor shall either himself supervise the execution of the works or shall appoint at his own
expense, an Engineer as his accredited agent approved by the Engineer-in-Charge, if contractor has
himself not sufficient knowledge or experience to be capable of receiving instruction or cannot give
his full attention to works. The contractor or his agent shall be present at the site(s) and shall
superintend the execution of the works with such additional assistance in each trade, as the work
involved shall require and considered reasonable by the Engineer-in-Charge. Directions/instructions
given by the Engineer-in-Charge, to the contractor’s agent shall be considered to have the same force
as if these had been given to the contractor himself.
 18
19.2 If the contractor fails to appoint a suitable agent as directed by the Engineer-in-Charge, the
Engineer-in-Charge shall have full powers to suspend the execution of the works until such date as
suitable agent is appointed by the contractor and takes over the supervision of the work. For any such
suspension, the contractor shall be held responsible for delay so caused to the works.

CLAUSE-20: INSTRUCTIONS AND NOTICES:

20.1 Except as otherwise provided in this contract, all notices to be given on behalf of the Corporation and
all other actions to be taken on its behalf may be given or taken by the Engineer-in-Charge or any
officer for the time being entrusted with the functions, duties and powers of Engineer-in-Charge.

20.2 All instructions, notices and communications etc, under the contract shall be given in writing and any
such oral orders/instructions given shall be confirmed in writing and no such communication which is
not given or confirmed in writing shall be valid.

20.3 All instructions, notices and communications shall be deemed to have been duly given or sent to the
contractor, if delivered to the contractor, his authorized agent, or left at, or posted to, the address given
by the contractor or his authorized agent or to the last known place of abode or business of the
contractor or his agent in case of services by post shall be deemed to have been served on the date
when in the ordinary course of post these would have been delivered to him and in other cases on the
day on which the same were so delivered or left.

20.4 The Engineer-in-Charge shall communicate or confirm the instructions to the Contractor in respect of
the execution of work in a ‘Work site Order Book’ maintained in the site office of the Engineer-in-
Charge and the contractor or his authorized representative shall confirm receipt of such instructions by
signing the relevant entries in his book. If required by the Contractor, he shall be furnished a certified
true copy of such instruction(s).

CLAUSE-21: CONSTRUCTION PLANT AND EQUIPMENT:

21.1 The Contractor shall provide and install all necessary construction plant, equipment and machinery
required for the execution of the work under the Contract, at his cost and shall use such methods and
appliances for the purposes of all the operations connected with the work covered by the contract
which shall ensure the completion of work(s) within the specified time.

21.2 Subject to the availability of any item of Corporation’s plant, equipment and machinery and at the
written request of the contractor, such plant, equipment and machinery may be issued to the
Contractor on hire for being deployed on the work contracted for, at pre-determined rates, terms and
conditions at the sole discretion of the Engineer-in-charge.

CLAUSE-22: PATENT RIGHTS:

The Contractor shall indemnify the Corporation, its representative or its employees against any action, claim or
proceedings relating to infringement or use of any patent or design or any alleged patent or design rights and
shall pay any royalties or other charges which may be payable in respect of any article or material or part
thereof included in the Contract. In the event of any claim being made or action being brought against the
Corporation or any agent, servant or employee of the /Corporation in respect of any such matters as aforesaid
the contractor shall immediately be noted thereof. Provided that such indemnity shall not apply when such
infringement has taken place in complying with the specific directions issued by the Corporation, but the
contractor shall pay any royalties or other charges payable in respect of any such use, the amount so paid being
reimbursed to the contractor only if the use was the result of any drawings and/or specifications issued after
submission of the tender.

CLAUSE-23: MATERIALS:

23.1 The Contractor shall at his own expense provide/arrange all materials required for the bonafide use on
work under the contract and also for initial mobilization, preliminary, enabling and ancillary works,
except those listed and specified in Schedule’B’. The quantity of such materials as stipulated in the
aforesaid schedule to be supplied by the Corporation will be that as may be actually required for the
work and shall be subject to the terms and conditions as self forth in the sub-clause 23.4 under this
clause.
 19
23.2 All materials to be provided by the Contractor shall be in conformity with the specifications laid
down in the Contract and the contractor shall furnish from time to time proof and samples, at his cost
of the materials as may be specified by the Engineer-in-Charge for his approval before use in the
works. The Engineer-in-Charge shall also have powers to have such tests, in addition to those
specified in the contract, as may be required and the contractor shall provide all facilities to carry out
the same. The cost of materials consumed in such tests and also expenses incurred thereon shall be
borne by the Contractor in all cases except when the material is agreed to be supplied by the
Corporation under the contract, and also where such tests which are in addition to those provided in
the contract disclose that the materials are in conformity with the provisions of the contract.

23.3 The Engineer-in-Charge or his representative shall be entitled at any time to inspect and examine any
materials intended to be used in or on the works, either on the site or at factory or workshop or other
place(s) where such materials are assembled, fabricated, manufactured or at any place where these are
lying or from where these are being obtained. For this purpose, the contractor shall afford such
facilities as may be required for such inspection and examination.

23.4 For the materials listed in Schedule ‘B’ which the Corporation has agreed to supply to the Contractor
for the work under the contract, the Contractor shall before 30 (Thirty) days of his requirement in
accordance with the agreed phased programme of the construction of work(s) send a requisition in
writing to the Engineer-in-Charge. The issue of such materials shall be subject to the following terms
and conditions:

(i) All materials issued by the Corporation to the Contractor for use in the work shall vest in the
Corporation and the contractor shall held all such items of materials as were custodian in trust on
behalf of the Engineer-in-Charge.

(ii) All costs, such as loading, transportation, unloading, storage etc. whatsoever as may be required.

a) from the place point of issue/supply by the Corporation to the ultimate use for/in the works
and/or
b) in connection with the return of material by the contractor to the Corporation stores, wherever
necessary under the provisions of the contract, shall be borne by the contractor.

(iii) The contractor shall maintain an account of receipt and use of materials issued by the Corporation
each day and submit the same to the Engineer-in-Charge in the form as may be prescribed for the
purpose of check and accounting. the contractor shall also, form time to time render proper
account of all materials issued by the corporation. If the contractor fails to do so as aforesaid, no
further material shall be issued to him and he shall be held responsible for any delay in the
execution of work which may occur on this account.

(iv) The godowns/stores of the contractor for storing the materials like cement etc. issued by the
Corporation shall be provided with two locks on each door. The key on one lock of each door
shall remain with the Engineer-in-Charge or his representative and the other with the Contractor’s
authorized agent at the site so that material is removed from the godowns/stores only according to
the daily requirements with the knowledge of both the parties.

(v) Materials tendered surplus shall, on completion of the works or on foreclosure of work or
cancellation of contract shall be returned by the contractor at his expense at the place from where
the same was issued by the Corporation. If the contractor is advised to return such material at a
place other than from where it was issued, the contractor shall deliver the material accordingly and
in that case, the Corporation shall bear the extra charges. If any, on this account, surplus stores
and or materials returned by the contractor will be credited to him at a price not exceeding that at
which the stores and materials were originally issued to him but due consideration shall be given
to and allowance claimed by the Corporation in respect of any depreciation or damage suffered by
the stores and/or materials whilst in the custody of the contractor.

(vi) On completion of works/foreclosure/cancellation, the contractors shall return forthwith all the
material issued to him by the Corporation laying in his possession/custody, failing which the
Engineer-in-Charge shall be at liberty to effect recovery at double the rates specified in Schedule
‘B’ for the aforesaid materials.

23.5 The Engineer-in-Charge shall have full powers to acquire or removal of any or all materials brought to
site by the contractor, which are not in accordance with the contract specifications or samples
 20
approved by him. Should contractor fail to remove the rejected materials the Engineer-in-Charge
shall be at liberty to have them removed by other means at the contractor’s cost. the Engineer-in-
Charge shall have full powers to procure other proper materials to be substituted at contractor’s costs.

CLAUSE-24: POWER SUPPLY:

24.1 Power (415 Volts, 3 phase, 50 cycles) as received by the Corporation from the Transmission system
and as required at site for use at the works by the contractor shall be supplied in bulk to him as per
actual load requirement and charged as mentioned in Schedule ‘D’on meter reading basis, until &
unless it is specified as ‘Free’ in Special Terms and Conditions. The power shall be provided only at
one location which may be upto 50 mtr. from work site. All electrical works of the contractor shall
conform to the rules and regulations relating in such works in force from time to time as specified in
the Indian Electricity Act/Rules and to the satisfaction of the Engineer-in Charge.

CLAUSE-25: SUPPLY OF UNFILTERED WATER FOR CONSTRUCTION

PURPOSES:

The contractor shall make his own arrangements for water required for and in connection with the work at his
cost. It shall be the responsibility of the contractor to satisfy himself that the water arranged by him is fit to
construction and consumption and he shall adequately treat such water whenever it is not found fit for the said
purposes.

CLAUSE- 26: WATCHING AND LIGHTING:

The Contractor shall provide and maintain at his expense all lights, guards, fencing and watching when and
where necessary or as required by the Engineer-in-Charge for the protection of the works or for the safety and
convenience of those employed on the works or the public.

CLAUSE-27: WORK DURING NIGHT OR ON SUNDAYS AND HOLIDAYS:

27.1 Subject to any provisions to the contrary contained in the contract, none of the works shall be carried
out during Sundays or holidays without the permission in writing of the Engineer-in-Charge.
However, when work is unavoidable or necessary for safety of life, property or works, the contractor
shall take necessary action immediately and advise the Engineer-in-Charge accordingly.

27.2 The Engineer-in-Charge may, however, direct the contractor that the work may be carried out on
holidays, Sundays and/or extra shifts to ensure completion of works under the contract as scheduled.

CLAUSE 28: SITE DRAINAGE, PROTECTION OF TREES AND PREVENTION OF

NUISANCE:

28.1 Unless otherwise provided in the contract, water which may accumulate on the site during the progress
of work or in trenches and excavations from any cause or source whatsoever shall be removed from
the site by the contractor to the satisfaction of the Engineer-in-Charge and at the contractor’s expense.

28.2 The Contractor shall endeavour to protect from damage trees marked by the Engineer-in-Charge at the
site of work or in the lands licensed to him for use under the contract. Where necessary the contractor
shall provide at his expense temporary fencing to protect such trees.

28.3 The contractor shall at no time, cause or permit any nuisance on the site or cause anything which shall
cause unnecessary disturbance or inconvenience to the public in general and owners/tenants/occupants
of adjacent properties.

CLAUSE-29: LABOUR:

29.1 The contractor shall employ labour in sufficient numbers to maintain the required rate of progress and
of quality to ensure workmanship of the degree specified in the contract and the satisfaction of the
Engineer-in-Charge. The Contractor shall not employ in connection with the works any person who
has not completed Eighteen years of age.
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29.2 The contractor shall pay to labour employed by him either directly or through sub-contractors,
wages not less than wages as defined in the Contract Labour (Regulation and Abolition) Act 1970,
General Rules framed thereunder and amendments from time to time.

29.3 The Contractor shall in respect of labour employed by him either directly or through sub-contractors
comply with or cause to be complied with the Contract Labour (Regulation and Abolition) Act,1970
and Rules framed thereunder in regard to all matters provided therein.

29.4 The Contractor shall comply with the provisions of all the Acts, Laws, and Regulation or Bye Laws of
and local or other Statutory Authority applicable in relation to the execution of the works, such as:

(i) Payment of Wages Act,1936 (Amended).

(ii) Minimum Wages Act, 1948 (Amended).
(iii) The Contract Labour (Regulation & Abolition) Act, 1970 with Rules framed thereunder as
amended.
(iv) Workmen Compensation Act, 1923 as amended by Amendment Act No.65 of 1976.
(v) Employer’s Liability Act, 1938 (Amended)
(vi) Maternity Benefit Act, 1961 (Amended)
(vii) The Industrial Employment (Standing Orders) Act, 1946 (Amended).
(viii) The Industrial Disputes Act, 1947 (Amended).
(ix) Payment of Bonus Act, 1965 and Amendment Act No.43 of 1977 and No.48 of 1978 and any
amendments thereof.
(x) The Personal injuries (compensation Insurance) Act 1963 and any modifications thereof and rules
made thereunder from time to time.

The contractor shall take into account all the above said financial liabilities in his
quoted rates and nothing extra, whatsoever, shall be payable to him on this
account.

(xi) Employees Provident Fund & Miscellaneous Provisions Act-1952 and any amendment thereof.

29.5 The Contractor shall be liable to pay his contribution and the employee’s contribution to the State
Insurance Scheme in respect of all labour employed by him for the execution of the contract, in
accordance with the provision of “the Employees State Insurance Act, 1948” as amended from time to
time. In case the Contractor fails to submit full details of his account of labour employed and the
contribution payable, the Engineer-in-Charge shall recover from the running bills of the contractor an
amount of contribution as assessed by him. The amount so recovered shall be adjusted again the
actual contribution payable for Employees State Insurance.

29.6 The Engineer-in Charge shall on a report having been made by an Inspecting Officer as defined in the
Contract Labour (Regulation and Abolition) Act and Rules or on his own in his capacity as Principal
Employer, have the power to deduct from the amount due to the contractor any sum required or
estimated to be required for making good the loss suffered by worker(s) by reason of non-fulfilment of
the conditions of the Contract for the benefit of workers non-payments of wages or of deductions
made from him for wages which are not justified by the terms of the contract or non-observance of the
said Act and Rules framed thereunder with amendments made from time to time.

29.7 The contract shall indemnify the Corporation against any payment to be made under and for
observance of the Regulations, Laws, Rules stipulated in clause-29.4 above without prejudice to his
right to claim indemnity from his sub-contractors. In the event of the contractor’s failure to comply
with the provisions of all the Acts/Laws stipulated in Clause 29.4 or in the event of degree award or
order against the contractor having been received from the competent authority on account of any
default or breach or in connection with any of the provisions of the Act/Law/Rules mentioned in Sub-
clause 29.4 above, the Engineer-in-Charge, without prejudice to any other right or remedy under the
contract shall be empowered to deduct sum or sums from the Bills of the contractor or from his
security deposit or from other payment due under this contract or any other contract to satisfy within a
reasonable tie the provision of the various Acts/Laws/Rules/Codes as mentioned under sub-clause
29.4 above, on the part of the contractor under the contract on behalf of and at the expenses of the
contractor and make payment and/or provide amenities/facilities /services accordingly,. In this regard,
the decision of the Engineer-in-Charge shall be conclusive and binding on the contractor.
 22
29.8 The Contractor shall at his own expense comply with or cause to be complied with the Provisions /
Rules provided for welfare and health of contractor labour to the Contract Labour (Regulation and
Abolition) Act and other relevant Acts and Rules framed thereunder or any other instruction issued by
Corporation in this regard for the protection of health and for making sanitary arrangements for
workers employed directly or indirectly on the works. In case, the contractor fails to make
arrangements at aforesaid, the Engineer-in-Charge shall be entitled to do so and recover the cost
thereof from the contractor.

29.9 The Contractor shall at his own expense arrange for the safety provisions as laid down in Safety
Manual of Corporation or as required by the Engineer-in-Charge, in respect of all labour directly or
indirectly employed for performance of the works and shall provide all facilities in connection
therewith. In case the contractor fails to make arrangements and provide necessary facilities as
aforesaid, the Engineer-in-Charge shall be entitled to do so and recover the cost thereof from the
Contractor. But this will not absolve the responsibility or otherwise thereof.

29.10 Failure to comply with “provisions/rules made for welfare and Health of contract Labour”. Safety
Manual, or the provisions relating to report on accidents and grant of maternity benefits to female
workers and all the relevant Acts/Rules referred in clause 29.4 above shall make the contractor liable
to pay the Corporation as liquidated damages an amount not exceeding Rs.50.00 for each default or
materially incorrect statement. The decision of the Engineer-in-Charge in each matters based on
report from the Inspecting officers as defined in the relevant Acts and referred in Clause 29.4 above
shall be final and binding and deductions for recovery of such liquidated damages may be made from
any amount payable to the contractor. In the event of any injury, disability or death of any workmen
in or about the work employed by the contractor either directly or through his sub-contractor,
contractor shall at all times indemnify and save the Corporation against all claims, damages and
compensation under the Workmen Compensation Act,1923,as amended from time to time or under
Law for time being in force and Rules thereunder from time to time and also against all costs, charges
and expenses of any smooth action by proceedings arising out of such accidents or injury, disability or
death of a workmen and against all sum or sums which may with the consent of the contractor be paid
to compromise or compound any claim in this regard. If any award, decree or order is passed against
the contractor for recovery of any compensation under the Workmen Compensation Act,1923, for any
injury, disability or death of a workman by any competent court, the said sum or sums shall be
deducted by the Engineer-in-Charge from any sum then due or that may become due to the contractor
or from his security deposit or sale thereof in full or part under the contract with the Corporation
towards fulfillment of the said decree award or orders.

29.11 Provided always that the contractor shall have no right to demand payment/claims whatsoever on
account of his compliances with his obligations under this clause and Labour Regulation.

CLAUSE-30: REMOVAL OF CONTRACTOR’S MEN:

The Contractor shall employ on the execution of the Works only such persons as are skilled and experienced in
their respective trades and the Engineer-in-Charge shall be at liberty to object to and required the contractor to
remove from works any persons employed by the Contractor on the execution of the works who, in the opinion
of the Engineer-in-Charge, mis-conducts himself or is incompetent or negligent in the proper performance of
his duties. The contractor shall forthwith comply with such requisition and such person shall not be again
employed upon the works without permission of the Engineer-in-Charge.
CLAUE-31: MATERIALS OBTAINED FROM EXCAVATION AND TREASURE,
TROVE FOSSILS ETC:

31.1 Materials of any kind obtained from excavation on the site shall remain the property of the
Corporation and shall be disposed off as directed by the Engineer-in-charge.

31.2 However, if any of the materials obtained from excavation on the site is such as can be used in
execution of work under the contract, the contractor will be allowed to use the same against recovery
of cost of material as per relevant schedule of Rates and basis on which the estimate was prepared,
provided the same is found suitable and is approved by the Engineer-in-charge.

31.3 Fossils, Coins, articles of value, structures and other remains or things of Geological or Archeological
interest discovered on the site shall be the absolute property of the Corporation. The contractor shall
take reasonable precautions to prevent his labour or any other person from removing or damaging any
such article or thing and shall immediately upon the discovery thereof and before removal, acquaint
 23
the Engineer-in-Charge with such discovery and carry out the Engineer-in-Charge’s instructions as
to the disposal of the same at the expenses of the Corporation.

CLAUSE-32: FORCE MAJEURE:

32.1 The term “Force Majeure” shall herein mean riots (other than among the contractor’s employees).
Commotion ( to the extent not insurable ), war (whether declared or not), invasion, act of foreign enemies,
hostilities, civil war, rebellion, revolution, insurrection, military or usurped power, damage from aircraft,
unclear fission, acts of God, such as earthquake (above 7 magnitude on Reicher Scale), lighting, unprecedented
floods, fires not caused by Contractor’s negligence and other such causes over which the Contractor has to
control and are accepted as such by the Engineer-in-Charge, whose decision shall be final and binding. In the
event of either party being rendered unable by Force Majeure to perform any obligation required to the
performed by them under this contract, the relative obligation of the party effected by such Force Majeure shall
be treated as suspended for the period during which such force majeure case lasts, provided the party allegation
that it has been rendered unable as aforesaid, thereby shall notify within 10days of all the alleged beginning
and ending thereof giving full particulars and satisfactory evidence in support of such cause.

32.2 On occurrence of Force Majeure the liability of either party shall be dealt with in accordance with
provisions of sub-clause 34.2.

32.3 Should there be a request for extension of time arising out of “Force Majeure” the same shall be
considered in accordance with Clause-39.

CLAUSE-33: LIABILITY FOR DAMAGE, DEFECTS OR IMPERFECTIONS AND

RECTIFICATIONS THEREOF:

33.1 If the Contractor or his labour or sub-contractor, injure, destroy or damage road, fence enclosures,
water pipe, cables, buildings, drains, electricity or telephone posts, wires, trees, grass line, cultivated
land in the area in which they may be working or in the areas continuous to the premises on which the
work or any part of it is being executed or if any damage is caused during the progress of work, the
Contractor shall upon receipt of a notice in writing in that behalf from the Engineer-in-Charge, make
the same good at his costs.

33.2 If it appears to the Engineer-in-Charge or his representative at any time during construction or
reconstruction or prior to the expiration of the Defects Liability period as specified in Schedule ‘D’
that a work has been executed with unsound, imperfect or unskilled workmanship or that any material
or article provided by the Corporation for execution of the work are unsound or of a quality inferior to
that contracted for, or otherwise not in accordance with the Contract, or that any defect, shrinkage or
other faults found in the work arising out of defective or improper materials or workmanship, the
Contractor shall, upon receipt of notice in writing in that behalf from the Engineer-in-Charge,
forthwith rectify or remove and reconstruct the work so specified in whole or in part, as the case may
be, and/or remove the materials/articles so specified and provide other proper and suitable materials at
his expense.

CLAUSE-34: CONTRACTOR’S LIABILITY AND INSURANCE:

34.1 From commencement to completion of the work(s) as a whole, the Contractor shall take full
responsibility for the care thereof and for taking precaution to prevent loss or damage. He shall be
liable for any damage or loss that happen to the works or any part thereof and to Corporation’s Plant,
Equipment and Material (hired or issued to the Contractor) shall be in good order and condition and in
conformity in every respect with the requirements of the Contract and instructions of the Engineer-in-
Charge.

34.2 (i) Neither party to the contract shall be liable to the other in respect of any loss or damage which
may occur or arise out of “Force Majeure” to the works or any part thereof or to any material or article
at site but not incorporated in the works or to any person or anything or material whatsoever of either
party provided such a loss or damage could not have been foreseen or avoided by a prudent person and
the either party shall bear losses and damages in respect of their respective men and materials. As
such liability of either parties shall include claims/compensation of the third party also.

(ii) Provided, however, in an eventuality as mentioned in sub-clause 342 (i) above, the following
provisions shall also have effect:
 24
(a) The Contractor shall, as may be directed in writing by the Engineer-in-Charge proceed
with the erection and completion of the works under and in accordance with the provisions and
conditions of the contract and
(b) The Contractor shall, as may be directed in writing by the Engineer-in-Charge, re-execute
the works lost or damaged, remove from the site any debris and so much of the works as shall
have been damaged and carry the Corporation’s TRIPT&P, Plant and Equipment, Material etc. to
the Corporation’s store. The cost of such re-execution of works, removal of damaged works and
carrying of Corporation’s store shall be ascertained in the same manner as for deviations and this
shall be added to the contract sum.

Provided always that the Contractor shall, at his own cost, repair and make good so much of the loss or damage
as has been occasioned by the failure on his part to perform his obligations under the contractor or not taking
precautions to prevent loss or damage or minimize the amount of such loss or damage. Final assessment of
loss or damage shall be decided by the Engineer-in-Charge and his decision shall be final and binding.

34.3 The Contractor shall indemnify and keep indemnified the Corporation against all losses and claims for
death, injuries or damage to any person or any property whatsoever which may arise out of or consequence of
the construction and maintenance of works during the contract period and also against all claims demands,
proceedings, damages, costs, charges and expenses whatsoever in respect of or in relation thereto and such
liabilities shall include claims/compensations of the third party.

34.4 (a) Before commencing execution of the work, the Contractor shall, without in any way limiting his
obligations and responsibilities under this condition, insure against any damage, loss or injury which may occur
to any property (excluding that of the Corporation but including the Corporation’s building rented to the
contractor wholly or in part and any part of which is used by him for storing combustible materials) public
liability arising out of the carrying out of the contract.

34.5 If the Contractor and/or his sub-contractors (if any) shall fail to effect and keep in force the insurance
referred to above or any other insurance which he/they may be required to effect under the terms of this
contractor then and in any such case the Corporation may, without being bound to, effect and keep in force and
such insurance and pay such premium or premiums as may be necessary for that purpose and from time to time
deduct the amount so paid by the Corporation from any moneys due or which may become due to the
contractor or recover the same as due from the contractor.

34.6 The contractor shall at his own expense arrange for the safety provisions as laid down in Safety
Manual of the Corporation in respect of the works covered under this contract. In case, the contractor
fails to comply with the provisions of the safety manual the Engineer-in-Charge shall be entitled to
and make the necessary arrangements at the risk and cost of the contractor. This will, however, not
absolve the Contractor of his overall responsibility to execute the works under the contract.

34.7 The contractor shall arrange adequate personal insurance for its employees/labour, third party and
comprehensive insurance for his vehicles plants and equipments etc.

CLAUSE-35: SUSPENSION OF WORKS:

35.1 The Contractor shall on the order of the Engineer-in-Charge suspend the progress of the works or any
part thereof for such time or times and in such manner as the Engineer-in-Charge may consider necessary and
shall during such suspension properly project and secure the work so far as is necessary in the opinion of the
Engineer-in-Charge. If such suspension:

(a) Provided for in the contract, or

(b) Necessary for proper execution of the works or by reason of weather conditions or by
some default on the part of the contractor, or
(c) Necessary for the safety of the works or any part thereof.

The Contractor shall not be entitled to extra costs (if any) incurred by him during the period of suspension of
the works; but in the event of any suspension orders by the Engineer-in-Charge for reasons other than
aforementioned and when each such period of suspensions exceeds 7 days, the contractor shall be entitled to
such extension of time for completion of the works as the Engineer-in-Charge may consider proper having
regard to the period or periods of such suspensions and to such compensation as the Engineer-in-Charge may
consider reasonable in respect of salaries or wages paid by the contractor to his employees during the periods
of such suspension.
 25
35.2 If the progress of works or any part thereof is suspended on the order of the Engineer-in-Charge for
more than one month at a time the contractor may serve a written notice on the Engineer-in-Charge
requiring permission within 15 days from the receipt thereof to proceed with the works or the part
thereof in regard to which progress is suspended and if such permission is not granted within that time
the contractor by a further written notice so served may (but is not bound to) elect to treat the
suspension where it affects part only of the works as an omission of such part or where it affects the
whole of the works an abandonment of the contract by the Corporation.

CLAUSE-36: FORECLOSURE OF CONTRACT IN FULL OR IN PART DUE TO

ABANDONMENT OR REDUCTION IN SCOPE OF WORK:

36.1 If at any time after acceptance of the tender, the Corporation decides to abandon or reduce the scope of
the works for reason whatsoever and hence does not require the whole or any part of the works to be carried
out, the Engineer-in-Charge shall give notice in writing to that effect to the contractor and the Contractor shall
have no claim to any payment of compensation or otherwise whatsoever on account of any profit or advantage
which he might have derived from the execution of the works in full but which he could not derive in
consequence of the foreclosure of the whole or part of the works. The contractor shall be paid at contract rates
for full amount of the works executed at site and in addition, a reasonable amount as certified by the Engineer-
in-Charge for the items hereunder mentioned which could not be utilized on the work to the full extent because
of the fore-closure:

(a) (i) The Corporation shall have the option to take over contractor’s materials or any part thereof either
brought to site or of which the contractor is legally bound to accept the delivery from suppliers (for
incorporation in or incidental to the work), provided, however the Corporation shall be bound to take over the
material or such portions thereof as the Contractor does not desire to retain. The cost shall, however, take into
account purchase price, cost of transportation and deterioration or damage which may have been caused to
materials whilst in the custody of the contractor.

(ii) For contractor’s materials not retained by the Corporation, reasonable cost of transporting
such materials from Site to Contractor’s permanent stores or to his other works, whichever is less. If
materials are not transported to either of the said places, no cost of transportation shall be payable.

(b) If any materials supplied by the Corporation are rendered surplus, the same except not exceeding
those at which there were originally issued less allowance of any deterioration or damage which may
have been caused whilst the normal wastage shall be refunded by the Contractor to the corporation
at rates materials were in the custody of the Contractor.

(c) Reasonable compensation for transfer of T&P from Site to Contractor’s permanent stores
or to his other works whichever is less. If T&P are not transported to either of the said places, no cost
of transportation shall be payable.

36.2 The Contractor, shall, if required by the Engineer-in-Charge, furnish to him books of account and
other relevant documents as may be necessary to enable him to certify the reasonable amount payable
under condition.

CLAUSE- 37: TERMINATION OF CONTRACT ON DEATH:

If the Contractor is an individual or a proprietary concern and the individual or the proprietor dies or if the
Contractor is a partnership concern and one of the partners dies, then, unless the Engineer-in-Charge is
satisfied that the legal representatives of the individual contractor or of
the proprietor of the property concern and in the case of partnership, the servicing partners are capable of
carrying out and completing the contract, the Engineer-in-Charge shall be entitled to terminate the Contract as
to its uncompleted part without the Corporation being in any way liable to payment of the compensation
whatsoever on any account of the estate of the deceased contractor and/or to the surviving partners of the
contractor’s firm on account of termination of the contract. The decision of the Engineer-in-Charge that the
legal representatives of the deceased contractor of the surviving partners of the Contractor’s firm cannot carry
out and complete the works under the contract shall be final and binding on the parties. In the event of such
termination the corporation shall not hold the estate of the deceased contractor and or the surviving partners of
the Corporation firm liable for damages for not completing the contract. Provided that the power of the
Engineer-in-Charge of such termination of contract shall be without prejudice to any other right of remedy
which shall have accrued or shall accrue to him under the contract.
 26

CLAUSE-38: DEFAULT BY THE CONTRACTOR AND TERMINATION OF

CONTRACT IN FULL OR IN PART.

38.1 If the contractor:

(i) commits in complying with or commits breach of any of the terms and conditions of the contract
and does not remedy it or take effective steps to remedy it immediately and no later than 10days in
any case after a notice in writing is given to him in that behalf by the Engineer-in-Charge: or

(ii) fails to complete the work(s) or any item of work(s) within the time specified in schedule ‘C’ or
any extended time under the contract and does not complete the work(s) or any item of work(s)
within the period specified in a notice given in writing in that behalf by the Engineer-in-Charge or

(iii) shall offer or give or agree to give to any person in corporation, a service or to any other person on
his behalf any gift or consideration of any kind as an inducement or reward for doing to fore
bearing to do or for having done or fore borne to do any act in relation to the obtaining or
execution of this or any other contract for the Corporation: or

(iv) shall enter into a contract with the Corporation in connection with which commission has been
paid or agreed to be paid by him or to his knowledge unless the particulars of any such
commission and the terms of payment thereof have previously been disclosed in writing by the
Engineer-in-Charge.: or

(v) shall obtain a contract with the Corporation as a result of ring tendering or other non-bonafide
methods of competitive rendering: or
(vi) being an individual, or if a firm, any partner thereof, shall at any time be adjudged insolvent or
have a receiving order or order for administration of his estate ma against him or shall take any
preceding for liquidation for the purpose of amalgamation of reconstruction under any Insolvency
Act for the time being in force or make any conveyance of assignment of his effective or
composition or arrangement for the benefit of his creditors or purport as to do, or if any
application be made under any Insolvency Act for the time being in force for the sequestration of
his estate or if a trust deed be executed by him for benefit of his creditors: or

(vii) being a company shall pass a resolution or the Court shall make an order for the liquidation of its
affairs or receiver or manager on behalf of the debenture holders shall be appointed or
circumstances shall arise which entitle the Court or debenture holders to appoint a receiver or
manager: or

(viii) shall suffer an execution in an execution being levied on his goods: or

(ix) assigns, transfers, sublets (engagement of labour on a piece-work basis or of labour with materials
not being incorporated in the work shall not be deemed to be subletting) or attempts to assign,
transfer or sublet the entire works or any portion thereof without the prior written approval of the
Engineer-in-Charge.

The Engineer-in-Charge shall have powers to terminate the contract in full or in part as aforesaid without
prejudice to any other right or remedy shall have accrued or shall accrue of which cancellation notice in writing
to the Contractor under the hand of the Engineer-in-Charge shall be conclusive evidence.

38.2 The Engineer-in-Charge shall on such termination of the contract, have power(s) to take possession of
the site of work under the contract as well as the land/premises allotted to the contractor for his
preliminary, enabling and ancillary works and (ii) also any materials, constructional plant, equipment
implements, stores, structures etc. thereon. The Engineer-in-Charge shall also have powers to carry
out the incomplete work by any means or through any other agency or by himself at the risk and cost
of the Contractor. In such a case, the value of the work done through such agencies shall be credited
to the Contractor at his contract prices and the contractor shall pay the excess amount, if any, incurred
in completing the works as aforesaid, as stipulated under sub-clause 38.4 hereunder.

38.3 On termination of the contract in full or in part, the Engineer-in-Charge may direct that a part or whole
of such plant, equipment and materials, structures be removed from the site of the work as well as
from the land/premises allotted to the contractor for his preliminary, enabling and ancillary work,
 27
within a stipulated period. If the contractor shall fail to do so within the period specified in a notice
in writing by the Engineer-in-Charge, the Engineer-in-Charge may cause them to be sold, holding the
net proceeds of such sale to the credit of the contractor, which shall be released after completion of
works and settlement of amount under the contract.

38.4 If the expenses incurred or to be incurred by the Corporation for carrying out and completing the
incomplete work or part of the same, as certified by the Engineer-in-Charge, are in excess of the value
of the work credited/to be credited to the contractor, the difference shall be paid by the contractor to
the Corporation. If the contractor fails to pay such an amount, as aforesaid within thirty days of
receipt of notice in writing from the Engineer-in-Charge, the Engineer-in-Charge shall be empowered
to recover such amount from any sums due to the contractor on any account under this or any other
contract or from his security deposit or otherwise.

38.5 Also, the Engineer-in-Charge shall have the right to sell any or all of the contractor’s unused materials,
constructional plant, equipment, implements temporary buildings/structures etc. and apply he proceeds
of sale thereof towards the satisfaction of any sums due from the contractor under the contract and if
thereafter there may be any balance outstanding from the contractor, the Engineer-in-Charge shall
have powers to recover the same in accordance with the provisions of the contract.

38.6 All decisions/actions of the Engineer-in-Charge under this clause, as aforesaid, shall be conclusive
binding on the contractor.

CLAUSE-39: COMPLETION TIME AND EXTENSIONS:

39.1 The time allowed for execution of the work as specified in Schedule ‘D’ or the extended time, if any in
accordance with these conditions shall be essence of the contract.

39.2 However, if the work is delay on account of:

(i) Increase in the quantity of work to be done under the contract as per clause 18: or
(ii) Suspension of work as per clause 35: or
(iii) Rebuilding of work as per clause 34: or
(iv) “Force Majeure”: or
(v) Any other cause which, in absolute discretion of the Engineer-in-Charge is beyond the
contractor’s control..

Then immediately upon the happening of any such event as aforesaid, the contractor shall inform the Engineer-
in-Charge accordingly, but the contractor shall nevertheless use constantly his best endeavours to make good
the delay and shall do all that may be required in this regard. The Contractor shall also request , in writing, for
extension of time to which he may consider, himself eligible under the contract, within fourteen days of the
date of happening of any such event as indicated above.

39.3 In any such case as may have arisen due to any of the events, aforesaid, and which may have brought
out by the contractor in writing, the Engineer-in-Charge may give a fair and reasonable provisional
extension of time, after taking into consideration the nature of the work delayed and practicability of
its execution during the period of extension. Provided in the event of non-receipt of a request for such
extension during contract for reasons whatsoever, the Engineer-in-Charge may, at his sole discretion
and with due regard to the event, grant fair and reasonable extension of time (provisional) sue motto.
Such extensions, if admissible, shall be communicated to the contractor by the Engineer-in-Charge
within two weeks of the date of receipt of such request or occurrence of the event but, in any case
before expiry of the contract period. However, final time extension with or without levy of
compensation for delay depending upon the circumstances and reasons for delay, shall be approved by
competent authority at the time of finalization of contract.

CLAUSE-40: COMPENSATION FOR DELAY:

40.1 If the contractor fails to complete the work as specified in the schedule ‘C’ before the expiry of the
period of completion as stipulated in the aforesaid Schedule, or any extended period (not due to the
fault of the contractor) as may be allowed, he shall without prejudice to any other right or remedy of
the Corporation on account of such default, pay as an ascertained/agreed compensation not by way of
penalty, such amount as stipulated in the aforesaid Schedule ‘C’.
 28
40.2 Should, however, the contractor achieve the completion of the entire works as a whole under the
contract within, the time as stipulated in Schedule ‘D’ or in the extended time (not due to reasons of
default on the part of the contractor) as may be accorded, the Corporation will refund to him the
amount of compensation recovered from him. If any, in respect of delay in the non completion of
work (s) under the individual group/sub group, as aforesaid in full: In this regard, the decision of the
Engineer-in-Charge shall be final and binding.

40.3 The amount of compensation may be adjusted/withheld/deducted or set off against any sum due or
payable to the contractor under this or any other contract with the Corporation.

CLAUSE 41: INSPECTION AND APPROVAL:

41.1 All works embracing more than one process shall be subject to examination and approval at each stage
thereof and the Contractor shall give due notice to the Engineer-in-Charge or his authorized
representative, when each stage is ready. In default of such notice, the Engineer-in-Charge shall be
entitled to appraise the quality and extent thereof and the decision of the Engineer-in-Charge in this
regard shall be final and binding.

41.2 No work shall be covered or put out of view without the approval of the Engineer-in-Charge or the
authorized representative and the Contractor shall afford full opportunity for examination of
foundations before permanent work is placed thereon. The Contractor shall give due notice to the
Engineer-in-Charge or his authorized representative whenever any such work or foundation is ready
for examination and the Engineer-in-Charge or his representative shall, without unreasonable delay,
unless he considers it unnecessary and advices the Contractor accordingly, examine and measure such
work or such foundations. In the event of the failure of the contractor to give such notice he shall, if
required by the Engineer-in-Charge uncover such work at the Contractor’s expense.

41.3 The Engineer-in-Charge or his representative shall have powers at any time to inspect and examine
any part of the works and the Contractor shall give such facilities as may be required for such
inspection and examination.

41.4 The contractor shall uncover any part of the works and/or make opening in or through the same as the
Engineer-in-Charge may from time to time direct for his verification and shall reinstate and make good
such part to the satisfaction of the Engineer-in-Charge. If any such part has been covered up or put out
of view after being approved by the Engineer-in-Charge and is subsequently found, on uncovering, to
be executed in accordance with the contract, the expenses of uncovering and/making openings in or
through, reinstating and making good the same, shall be borne by the Corporation. In any other causes
all such expenses shall be borne by the Contractor.

CLAUSE 42: COMPLETION CERTIFICATE:

42.1 The work shall be completed to the entire satisfaction of the Engineer-in-Charge and in accordance
with the time mentioned in Schedule ‘D’ and terms and conditions mentioned in clause 39. As soon as
the work under the contract is completed as a whole, the contractor shall give notice of such
completion to the Engineer-in-Charge. The Engineer-in Charge, within two weeks of receipt of such
notice, shall inspect the work and shall satisfy himself that the work(s) has been completed in
accordance with the provisions of the Contract and then issue to the contractor a certificate of
completion indicating the date of completion. Should the Engineer-in-Charge notice that there are
defects in the works or the works are not considered to be complete, be shall issue a notice in writing
to the Contractor to rectify replace the defective work or any part thereof or complete the work, as the
case may be, within such time as may be notified and after the contractor has complied with a
aforesaid and gives notice of completion, the Engineer-in-Charge shall inspect the work and issue the
completion certificate in the same manner as aforesaid.

42.2 No certificate of completion shall be issued as stipulated under 42.1 above, nor work be considered to
be completed, unless the contractor shall have removed from the work site and, or premises all his
belongings/temporary arrangements brought/made by him for the purpose of execution of the work
and clean the site and/or premises in all respect and made the whole of the site and/or premises fit for
immediate occupation/use to the satisfaction of the Engineer-in-Charge. If the contractor fails to
comply with the above mentioned requirements on or before the date of completion of the work, the
engineer-in-Charge, may, as he thinks fit and at the risk and cost of the contractor, fulfil such
requirements and remove/dispose off the contractor’s belongings/temporary arrangements, as
aforesaid, and the contractor shall no claim in this respect except for any sum realized by the sale of
 29
contractor belongings/temporary arrangements less the cost of fulfilling the said requirements and
any other amount that may be due from the contractor. Should the expenditure on the aforesaid
account exceed the amount realized by sale of such contractor’s belongings/temporary arrangements
then the contractor shall on demand pay the amount of expenditure.

CLAUSE 43: DEFECT LIABILITY PERIODS:

The Contractor shall be responsible to make good and remedy, at his cost within such period as may be
stipulated by the Engineer-in-Charge, any defects which may develop or may be noticed before the expiry of
the period mentioned in Schedule ‘D’ from the certified date of completion of the entire work covered under
the contract.

CLAUSE 44: MEASUREMENT:

44.1 The Engineer-in-Charge shall except as otherwise stated, ascertain and determine by measurement the
value of work done in accordance with the contract.

44.2 Notwithstanding any provision in the relevant standard method of measurement or any general local
custom, measurement of work done under the contract shall be taken in accordance with the procedure
set forth in the Technical Specifications or Schedule of Quantities under the contract. In the case of
items of work which are not covered by the Technical specification or Schedule of Quantities
measurement shall be taken, in accordance with the relevant standard methods of measurements laid
down by the Indian Standard Institution.

44.3 All items having a financial value shall be entered in measurement book, level book, etc. prescribed by
the Corporation so that a complete record is maintained of all work performed under the contract.

44.4 Measurement shall be jointly by the Engineer-in-Charge or his authorized representative and by the
Contractor or his authorized representative.

44.5 Before taking measurements of any works, the Engineer-in-Charge or authorized representative
deputed for the purpose shall give a reasonable notice to the Contractor. If the Contractor fails to
attend or send authorized representative for measurement after such a notice or fails to countersign or
to record the objection within a week from the date of taking the measurement: then in that event the
measurement taken by the Engineer-in-Charge shall be taken to be correct and final measurements of
such work.

44.6 The contractor shall, without extra charge, provide assistance with every appliances, labour and other
things necessary for measurement.

44.7 Measurement shall be signed and dated by both parties on the Site on completion of measurement. If
the contractor objects to any of the measurements recorded by the representative of the Engineer-in-
Charge, a note to that effect shall be made in the measurement book against the item objected to and
such note shall be signed and dated by both parties engaged in taking the measurement. The decision
of the Engineer-in-Charge on any dispute or difference or interpretation shall be final and binding on
the contractor in respect of all contract items, substituted items, extra items and deviations.

CLAUSE-45: PAYMENT ON ACCOUNT:

45.1 Interim bills shall be submitted by the Contractor monthly on or before the date fixed by the Engineer-
in-Charge for the work executed. The Engineer-in-Charge shall then arrange to have the bills verified
with reference to the measurement book(s).

45.2 Payment on account for amount admissible shall be made on the Engineer-in-Charge certifying the
sum to which the contractor is considered by way of interim payment for the work executed, after
deducting therefrom the amounts already paid, the security deposit and such other amounts as may be
withheld/deductable or recoverable in terms of the Contract.

45.3 Payment of the Contractor’s bill shall be made by the Corporation within 21 days from the date of
submission of the bill subject to the acceptance of the Engineer-in-Charge.
 30
45.4 Payment due to the contractor shall be made by crossed cheque by the Engineer-in-Charge or by
F&A Wing of Corporation. Such cheques shall be issued direct to the contractor on furnishing a
stamped receipt for the amount of the cheque or to his constituted attorney duly authorized to receive
such payment from the Engineer-in-Charge.

45.5 Any interim certificate given relating to work done or materials delivered may be modified or
corrected by any subsequent interim certificate or by the final certificate. No certificate(s) of the
Engineer-in-Charge supporting an interim bill shall itself be conclusive evidence that any work or
materials to which it relates is/are in accordance with the contract.

45.6 Should there be a request for extension of date of completion, pending its consideration interim
payments shall continue to be made as provided herein.

CLAUSE 46: TAXES, DUTIES AND LEVIES ETC:

46.1 All existing sales tax or any new tax or duty levy, such as Octroi, Dharat, Royalty, Entry tax or
Terminal Tax on all materials, including Petrol, Oil and Lubricants (and increase, if any on these during the
currency of the contract) that the contractor has to purchase for the performance of the contract, shall be
payable by the contractor and the Corporation will not entertain any claim for compensation whatsoever in this
regard. The rates quoted by the contractor shall be deemed to be inclusive of all such taxes, duties, levies etc.
and any increase thereon.

46.2 However, if a New Tax or Duty or Levy (other than that existing on the date of opening of the tender)
is imposed under a statute or law during the currency of the contract and the contractor becomes liable to and
actually pays the same for obtaining material required for bonafide use on the works contracted, then the
contractor shall immediately inform the Engineer-in-Charge in this regard. The Corporation will reimburse the
same to the contractor on production of satisfactory proof of payment.

46.3 Works tax as applicable on total value of works including deviations or extra items etc. is presently
deductible from the payments due the contractor. Works tax as may be applicable in Chhattisgarh State
subsequently will be deducted from the payments due to the contractor and difference of amount will be
reimbursed separately if the rates are revised subsequent to the award of work.
CLAUSE 47: PAYMENT OF FINAL BILL:

The final bill shall be submitted by the contractor within one month of the date fixed for completion of the
work or of the date the certificate of completion furnished by the Engineer-in-Charge. No further claim in this
regard unless as specified herein under shall be entertained. Payment shall be made within two months. If
there shall be any dispute about any item or items of the work then the undisputed item or items only shall be
paid within the said period of two months. The contractor shall submit a list of the disputed items within thirty
days from the disallowance thereof and if he fails to do so, his claim shall be deemed to have been fully waived
and absolutely extinguished.

CLAUSE 48: OVER PAYMENTS AND UNDER PAYMENTS:

48.1 Whenever any claim whatsoever for the payment of a sum of money to the Corporation arises out of
or under this contract against the Contractors the same may be deducted by the corporation from any sum then
due or which at any time thereafter may become due to the contractor under this contract and failing that under
any other contract with the Corporation or from any other sum whatsoever due to the contractor from the
corporation or from his security deposit, or he shall pay the claim on demand.

48.2 The Corporation reserves the right to carry out post payment audit and technical examination of the
final bill including all supporting vouchers, abstracts, etc. The Corporation further reserves the right to
enforce recovery of any overpayment when detected, notwithstanding the fact that the amount of the final bill
may be included by one of the parties as an item of dispute before an arbitrator is appointed under clause- 55 of
this contract and notwithstanding the fact that the amount of the final bill figures in the arbitration award.

48.3 If as a result of such audit and technical examination any overpayments is discovered in respect of any
work done by the contractor or alleged to have been done by him under the contractor, it shall be recovered by
the Corporation from the Contractor by any or all of the methods prescribed above, and if any underpayment is
discovered, the amount shall be duly paid to the contractor by the Corporation.

48.4 Provided that the aforesaid right of the Corporation to adjust overpayments against amount due to the
contractor under any other contract with the Corporation shall not extent beyond the period of two year from
 31
the date of payment of the final bill or in case the final bill is a MINUS bills, from the date the amount by
the Contractor under the MINUS final bill is communicated to the Contractor.

48.5 Any sum of money due and payable to the contractor (including the security deposit returnable to him)
under the contract may be withheld or retained by way of lien by the Engineer-in-Charge or Corporation
against any claim of the Corporation or such person or persons in respect of payment of a sum of money
arising out of or under any other contract made by the contractor with the Engineer-in-Charge, or corporation
or with such other person or persons.
The sum of money so withheld or retained under this clause by the Engineer-in-Charge or Corporation
will be kept withheld or retained as such by the Engineer-in-Charge or Corporation or till his claim arising out
of in the same contract or any other contract is either mutually settled or determined by the arbitrator, if the
contract is governed by the arbitration clause under the clause-55 or by the competent Court hereinafter
provided, as the case may be, and the contractor shall have no claim for interest or damages whatsoever on this
account or any other ground in respect of any sum of money withheld or retained under this clause.

CLAUSE-49: TRAINING OF APPRENTICES:

The contractor shall, during the currency of the contract, engage and also ensure engagement by his sub-
contractor and other employed by the contractor in connection with the works, such number of apprentices and
in such categories for such periods as may be required under the Apprenticeship Act 1961 and he shall be
responsible for all obligations of the Employer under the aforesaid Act, including the liability to make payment
to Apprentices as required under the Act.

CLAUSE-50: CONTRACT MATTERS TO BE TREATED AS CONFIDENTIAL:

All documents, correspondence, decisions and orders concerning the contract shall be considered as
confidential and/or restricted in nature by the contractor and he shall not divulge or allow access to them and
shall continue so to apply even after the execution of such works under the contract.

CLAUSE-51: LAWS OF GOVERNING CONTRACT:

51.1 Unless otherwise hereinafter provided, this contract shall be governed by the Indian Laws for the time
being in force. Any other specific laws which may be applicable in J&K State, shall also be applicable
for the purpose of this contract.
51.2 The contractor shall take necessary steps to ensure that all persons employed on any work in
connection with this contract have noted that the relevant Official Secret Act applies to them and shall
continue so to apply even after the execution of such works under the contract.

CLAUSE-52: FINALITY CLAUSE:

It shall be accepted as an inseparable part of the contract that in matters regarding materials, workmanship,
removal of improper work, interpretation of the contract drawings and contract specifications, mode of
procedure and the carrying out of work as stipulated in the clause Nos.. 7, 8, 10,13, 17,18, 21, 23, 24, 29, 32,
34, 37,38, 40, 41 & 44, the decision of the Engineer-in-Charge, which shall be given in writing, shall be final
and binding on the contractor.

CLAUSE-53: SUM PAYABLE BY WAY OF COMPENSATION TO BE CONSIDERED

AS REASONABLE WITHOUT REFERENCE TO ACTUAL LOSS:

All sums payable by way of compensation to the Corporation under any of these conditions shall be considered
as reasonable compensation without reference to the actual loss or damage sustained and whether or not
damage shall have been sustained.

CLAUSE-54: ARBITRATION:

54.1 Except as otherwise provided, in clause 53 herein before, all questions, disputes or differences in
respect of which the decision has not been final and conclusive, arising between the contractor and the
Corporation, in relation to or in connection with the contract shall be referred for arbitration in the manner
provided as under:

Either of the parties may give to the other notice in writing of the existence of such question, dispute or
difference, which shall be settled in accordance with the Arbitration and conciliation act 1996.
 32
(a) In case of Dispute or difference arising between the Corporation and a contractor
relating to any matter arising out of or connected with this agreement, such dispute or difference
shall be settled in accordance with the Arbitration and Conciliation Act, 1996. The arbitral
tribunal shall consist of 3 arbitrators one each to be appointed by the Corporation and the
Contractor. The third Arbitrator shall be chosen by the two Arbitrators so appointed by the parties
and shall act as presiding arbitrator. In case of failure of the two arbitrators appointed by the
parties to reach upon a consensus in choosing the presiding Arbitrator within a period of 30 days
from the appointment of the arbitrators, the Presiding Arbitrator shall be nominated by the
President of the Institution of Engineers (India).
(b) If one of the parties fails to appoint its arbitrator in pursuance of sub-clause (a) above within 30
days after receipt of the notice of the appointment of its arbitrator by the other party, then in the
first instance the Presiding arbitrator shall be nominated by President of the Institution of
Engineers (India). A certified copy of the order of the President of the Institution of Engineers
(India), making such nomination shall be furnished to each of the parties. This presiding
Arbitrator shall then appoint the Arbitrator since left to be appointed.
(c) Arbitration proceedings shall be held at Faridabad / New Delhi, and the language of the arbitration
proceedings and that of all documents and communications between the parties shall be English.
(d) The decision of the majority of arbitrators shall prevail. The cost and expenses of Arbitration
proceedings will be paid as determined by the arbitral tribunal. However, the expenses incurred
by each party in connection with the preparation, presentation, etc. of its proceedings as also the
fees and expenses paid to the arbitrator appointed by such party or on its behalf shall be borne by
each party itself.
54.2 Performance under the contract shall continue during Arbitration proceedings and payments due to the
Contractor by the owners shall not be withheld unless they are the subject matter of the Arbitration
proceedings.
54.3 A notice in writing of the existence of question, dispute or difference in relation to, or in connection
with the contract shall be served by either party within 90 (Ninety) days of the first occurrence of any event
upon which the said question, dispute or difference is based, failing which all rights and claims of the parties
under this contract in relation to or in connection with such question, dispute or difference shall be deemed to
have been waived off and thus, forfeited and absolutely barred. The decision of the Engineer-in-Charge with
regard to the first occurrence of such even for the purpose of reckoning the said period of limitation shall be
final and binding.

54.4 The Arbitrator shall make a speaking award.

Note: In case of a Contract with another PSU / Govt. Deptt. the above said clause 55.1 to
55.3 shall stand deleted and the following Arbitration Clause shall apply:
54.1 Except as otherwise provided, in clause-53 herein before, all questions, dispute or difference in respect
in which the decision has not been final and conclusive arising between the contractor and the Corporation, in
relation to or in connection with the contract shall be settled by arbitration in terms of the Ministry of finance
(Bureau of Public Enterprise) existing office memorandum issued from time to time or any modification /
amendment thereof.
54.2 The award of the Arbitrator shall be binding upon the parties to the dispute, provided, however, any
party aggrieved by such award may make a further reference for setting aside or revision of the award to the
Authority in terms of the Ministry of Finance (Bureau of Public Enterprise) existing office memorandum
issued from time to time or any modification/amendment thereof, whose decision shall bind the parties finally
and conclusively. The parties to the dispute will share equally the cost of arbitration as intimated by the
Arbitrator.
54.3 A notice in writing of the existence of question, dispute or difference in relation to, or in connection
with the contract shall be served by either party within 90(Ninety) days of the first occurrence of any event
upon which the said question, dispute or difference is based, failing which all rights and claims of the parties
under this contract in relation to or in connection with such question, dispute or difference shall be deemed to
have been waived off and thus, forfeited and absolutely barred. The decision of the Engineer –in-Charge with
regard to the first occurrence of such event for the purpose of reckoning the said period of limitation shall be
final and binding.

CLAUSE 55: COMPETENT COURT:

All the disputes/difference against this contract, if not resolved through Arbitration, will be dealt only in the
High Court of Chhattisgarh at Bilaspur.
 33

FORM OF BANK GUARANTEE FOR THE CONVERSION OF CASH AMOUNT OF SECURITY

DEPOSIT AGGREGATING TO Rs.ONE LAKH.

(On Bank’s letter head with adhesive stamp)

To

………………………..
………………………..

1. we, the……………………………………Bank (hereinafter referred to

as “ the said Bank”) and having our registered office at……………………do hereby undertake and
agree to indemnify and keep indemnified the National Hydroelectric Power Corporation Limited:
represented by………………………………..(hereinafter referred to as ‘ the said Corporation’ which
expression shall, unless repugnant to the subject or context, include its administrators, successors and
assigns), to the extent of Rs.1,00,000.00 (Rupees one lakh only) on behalf
of…………………………………in lieu of an equal cash amount of security deposit deposited by the
said contractor and/or deducted by the said Corporation from the bills of the said contractor and which
the said Corporation has agreed to convert against a bank guarantee hereunder, under the provisions of
Contract No…………………………..dated………..which the said contractor has entered into with the
said Corporation in connection with the construction of…………………….at a total cost of
Rs………………(Rupees…………………………(hereinafter called the ‘said contract’).

2. We, the said Bank also do hereby agree to pay unequivocally and
unconditionally with 48 hours on demand, in writing, from the said
Corporation of any amount upto and not exceeding Rs.1,00,000.00
(Rupees one lakh only) to the Corporation for any purpose or cause or
any account whatsoever under the provisions of the said contract in
which respect of decision of the said Corporation shall be final and
binding on us.

3. Provided that shall not be necessary for the said Corporation to proceed
against the said contractor before proceeding against us and the
guarantee herein contained shall be enforceable against us,
notwithstanding any security which the Corporation may have obtained
or obtain from the said contractor shall, at the time when proceedings are
taken against us as hereunder, be outstanding or unrealized.

4. We the said Bank, further agree that this guarantee shall be valid and
binding on us upon and including and shall not be terminable by notice
or any change in the constitution of the said Bank or the said contractor
or by any other reasons whatsoever and our liability hereunder shall not
be impaired or discharge by any extension of time or variations made,
given conceded, or agreed with or without our knowledge or consent ,
by or between the parties to the said contract.

5. We also undertake not to revoke this guarantee during its currency

except with the previous consent, in writing, of the said corporation.

6. Our liability under this guarantee is restricted to Rs……………

(Rupees…………). Our guarantee shall remain in force
 34
until……………………………….unless a suit or action to enforce a
claim under the guarantee is filed against us within six months from that
date, all your rights under this guarantee shall be forfeited and we shall
be relieved and discharged from all liabilities thereunder.

In the presence of Signed

Witness For and on behalf of the Bank
………………….
………………… Bank’s common seal.

Dated this………………………………..day of………………..200…………

The above Guarantee is accepted
by the Corporation.
(For and on behalf of the Corporation.

Signature…………………………..
Name & Designation……………..
Name of Project/Unit………………
Dated……………………………….